Team
2:
Whole
Foods
Presenta8on,
NBA
5330
Management
Cases
2/18/2013
Kevin
Bell,
Jen
Cohen,
MaE
De
Paolo,
Sarah
Hu,
Aashish
Sharma
Whole
Foods
should
acquire
Wild
Oats
and
increase
its
product
offerings
to
enable
lifestyle
shopping
and
maintain
its
leadership
posi:on
Whole
foods
currently
is
the
leader
in
the
natural-‐ food
retail
chain
and
the
fastest
growing
company
in
the
grocery
market
• Natural
food
segment
growing ...view middle of the document...
E.B
Kroger’s
Costco
Traders
Joe
Safeway
Low
Cost
Low
#
of
SKU’s
Summary strategy Consumer segments Competition opportunities Conclusion
US
Natural
Food
offerings
are
being
penetrated
by
conven:onal
stores
that
offer
non-‐natural
foods
as
well
2003
50%
50%
US
Food
Retailing
Business
US
Natural
Conven8onal
Store
Format:
Kroger's,
Albertson's,
Safeway,
WalMart
Specialist
Health
&
Natural
Product:
Whole
Foods,
Wild
Oats,
Trader
Joes
Since
1991,
conven8onal
store
sales
of
natural
foods
have
moved
from
7%
to
50%
market
share
Consumer segments
Summary
strategy
Competition
opportunities
Conclusion
Within
the
value
chain,
the
retail
segment
offers
the
best
margin
and
poten:al
for
expansion
Lower
margins
Distributors
Opportuni:es:
Limit
supplier
power
in
a
highly
consolidated
industry
through
backward
integrate
and
reduce
delivery
8me
of
perishable
goods
by
elimina8ng
the
middle
man
Limita:ons:
Could
threaten
rela8onship
with
current
distributors
by
becoming
their
compe8tors
Opportuni:es:
Display
social
responsibility
that
consumers
will
buy,
differen8ate
and
redefine
themselves,
increased
demand
from
customers
Limita:ons:
Taking
8me
to
learn
organic
process
standards
Opportuni:es:
Thought
leadership
in
the
industry,
influencing
more
stringent
regula8on
standards
Producers
Retailers
Higher
margins
Consumer segments
Limita:ons:
Will
poten8ally
create
new
challenges
in
mee8ng
this
standards
and
finding
producers
or
distributors
who
meet
them
as
well
Summary
strategy
Competition
opportunities
Conclusion
Whole
Foods
faces
challenges
from
alterna:ve
channels
such
as
conven:onal
grocers
and
discount
stores
due
to
lower
pricing
and
convenience
factors
Conven8onal
Grocers
Discounters/
Warehouse
Clubs
Neighborhood
Delicatessens
• More
diverse
offering
of
product
categories
• Easier
access
to
the
periphery
of
organic
consumers
• Low-‐cost
opera8ng
structures,
limited
SKUs
• Larger
...